Greenhouse gas allowances
Lieu: European Union
End production: 15/02/2013 First transmission: 15/02/2013
The European Union Emissions Trading System (EU ETS) is a key tool for reducing the industrial emissions of the EU in a cost efficient way. Since the start of the second trading period in 2008, emissions have been reduced by more than 10%. The original policy intention was to set up a market-based measure that would stimulate the carbon price, thus influencing in a positive way investment in low carbon technology and renewable energy, which in turn would result in a reduction of emissions. However, reduction of emissions in the second trading period can be largely contributed to the economic downturn which has lead to the reduced economic activities and production, as indicated in the Commission's report on the state of the European carbon market in 2012. Despite witnessing a reduction of emissions since the start of the EU ETS, the system currently faces serious imbalances. The current economic crisis combined with a significant inflow of external emission reduction credits from the Clean Development Mechanism (CDM) as well as a number of regulatory provisions relating to the transition to the third trading period (2013-2020), have led to a significant surplus of allowances. By the end of 2011 a surplus of 955 million allowances had accumulated and is set to grow. As the supply of allowances is far exceeding demand, the carbon price has diminished from around 30 EUR/ton CO2 to around 7 EUR/ton CO2. Greenhouse gases and sectors included in the EU ETS are: Carbon dioxide (CO2) from: Power and heat generation, Energy-intensive industry sectors including oil refineries, steel works and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals, Commercial aviation, Nitrous oxide (N2O) from production of nitric, adipic, glyoxal and glyoxlic acids and Perfluorocarbons (PFCs) from aluminium production.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Animation on Emmisions Trading System.
||National plans on emmissions allowances (documents from several EU countries).
||Energy industries: oil, coal.
||Chimenees from several industries, smoke.
||Airport, civil aviation, planes taking of and landing.
||Aviation: cargo flights.